2A - The Michigan Daily - Wednesday, September 8, 1999
NATION/WORLD
Viacom acquiring BS for $36B
NEW YORK (AP) - Viacom Inc. is buying CBS
Corp. in the richest media merger in history - a
S36 billion deal that combines the owner of hip
properties like MTV and VHI with the old-line
network that brought you "60 Minutes" and
"Murder, She Wrote."
CBS, which changed hands just four years ago
when it was bought by Westinghouse Electric
Corp., will now become part of a radio, TV and
film powerhouse to rival conglomerates like Time
grner Inc. and Walt Disney Co.
4 Viacom will own last season's top-rated TV net-
work, as well as Paramount Studios, MTV, VH 1,
N4ickelodeon and the Simon & Schuster publishing
house.
g The new company will be called Viacom, but the
'BS name -- which carries the legacy of Walter
'Cronkite and Edward R. Murrow - will remain on
tjie network.
"We will be global leaders in every facet of the
,edia and entertainment industry, financially
strong from day one, with an enviable stable of
global brands," said Viacom Chair Sumner
Redstone.
Redstone will be chair and chief executive of the
new entity, but CBS management will have a major
-role. CBS President Mel Karmazin will be presi-
dent and chief operating officer, becoming heir
apparent to Redstone.
Analysts praised the deal as a good fit. CBS will
-et a TV and film studio to provide shows for its
anetwork, while Viacom gains major advertising out-
lets to promote the films and shows produced by
Paramount and its Spelling Entertainment TV stu-
dio.
"It's a good deal for everybody," said Chris
Dixon, a media analyst at PaineWebber Inc. "You
need to be big. You need to have a global presence.
While many of Viacom's properties have catered
to a youthful audience, CBS has been successful
with older viewers who are attracted to shows like
"60 Minutes," "Diagnosis: Murder" "Touched by
an Angel" and, before it went off the air a few years
ago, "Murder, She Wrote."
The deal faces some regulatory hurdles, but ana-
lysts said they see no major problem. The company
may have to sell some TV stations to meet federal
ownership rules, and Viacom's half-interest in the
struggling UPN network may have to be sold or
folded into CBS because of a rule that bars a com-
pany from owning more than one TV network.
The deal would be the latest transformation of
CBS, which was founded in 1927 and became
known as the "Tiffany Network" under the leader-
ship of William Paley. He was installed as leader
of the fledgling broadcasting business when it
was purchased in 1928 by his cigar-maker father,
Sam.
Media mogul Ted Turner pursued CBS before it
was sold in 1995 to Westinghouse by Paley's suc-
cessor, Laurence Tisch.
Westinghouse shed its industrial and nuclear
power businesses and took the CBS name. As it
expanded into media, it acquired Infinity
Broadcasting. which was led by Karmazin.
The merger is the biggest in the media business
since Disney's purchase of Capital Cities/ABC for a
then-record $19 billion in 1996.
Analysts said the deal had its roots in talks
between the two companies about combining their
TV stations. Many media companies have been
talking about such deals since the Federal
Communications Commission ruled last month that
companies can own more than one TV station in the
same city.
The company that became Viacom was spun off
from CBS in the 1970s because of government
rules, which have since been repealed, that prevent-
ed networks from owning their own programming.
Since then, Viacom has grown into a major play-
er in media and cable, forming the pay channel
Showtime in 1978, acquiring MTV in 1986, and
buying Blockbuster Video and Paramount in 1994.
TV networks have increasingly been trying to
cut programming costs by assuming ownership of
the shows they air. Paramount Network Television
produces eight shows that will air this fall, all but
one of them already on CBS or UPN. The one
exception is a lucrative property: NBC's hit come-
dy "Frasier."
Under terms of the deal, CBS shareholders will
receive 1.085 shares of Viacom's class B stock.
Shares of both companies, which have been run
up over the past week on speculation that a deal was
in the works, shot up even more after the announce-
ment of the merger yesterday morning.
AROUND THE NATION
Cisneros pleads guilty to misdemeanor
WASHINGTON - Former housing secretary Henry Cisneros pleaded
guilty yesterday to a single misdemeanor charge, ending a four-year inves-
tigation by an independent counsel into allegations that he lied to the FBI
about money he paid to a former mistress.
As part of his plea, Cisneros will pay a fine of S 10,000 but will not fa
any jail time or probation.
Cisneros was set to stand trial in U.S. District Court on Monday on 18
felony charges stemming from his relationship with ex-mistress Linda
Jones. But instead of bringing in hundreds of potential jurors to hear the
case, attorneys on both sides showed up with terms of a last-minute plea
agreement that had Cisneros admitting to a misdemeanor charge that he had
lied.
The former HUD secretary and one-time mayor of San Antonio could
have faced years in prison had he been convicted of the more serious
charges. He also could have been barred from seeking elected office if con-
victed of any felonies. The plea agreement, however, calls for no prison time
and no probation and leaves open the possibility that Cisneros could retu*
Michigan Book & Supply AA 2,8, Sp 2, Univ
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hurch
Comm
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LAWSUITS
Continued from Page 1A
needs to review information and cross
examine witnesses.
Terry Pell. senior legal counsel for
CIR, said the introduction of intervening
defendants into the cases will not sub-
stantially affect the fundamental issue
being challenged in the lawsuits - the
constitutionality of race in college
admissions.
"Adding those issues will not subtract
from the issue that is at the table," Pell
said.
In the interest of preventing further
delay, Pell said CIR will not appeal the
court's ruling.
"We want to move forward," he said.
Former U.S. President and University
alum Gerald Ford supports the fight to
preserve affirmative action. He wrote an
opinion piece for the Aug. 8 edition of
The New York Times backing the
University's defense of its admissions
policies.
Ford wrote that an affirmative action
"ban would scuttle Michigan's current
system one that takes into account near-
ly a dozen elements - race, economic
standing, geographic origin, athletic and
artistic achievement among them - to
create the finest educational environ-
ment for all students"
IRWIN
Continued from Page 1A
ed to do this, he said. "It's important for
students to get representation" in the
community. "After all, we're a big part of
it."
Irwin said students and other citizens
don't get as involved in city politics as
they do in larger scale campaigns. For
example, voter turnout typically is much
higher during presidential election years
than any others.
The seasoned political activist said
this fact is a little backward.
"It's interesting that voter turnout is
highest during presidential years because
you can make the most difference in
local elections," he said. "Every vote
counts more.
Ann Arbor City Council Member
Elizabeth Daley (D-Ward V) said Irwin
shouldn't worry about his opinions being
undervalued just because of his age.
"There's a lot of older people who
sound like idiots whenever they open
their mouth, Daley said. "You have to
do your homework and listen to what
people have to say - that's what counts
the most.",
Daley said it's important to see young
people fight apathy and get involved in
local politics.
"The issues are so fascinating and so
important," she said. "The sooner they
can get involved and know their way
around, the better it is."
Josh Cowen, an LSA senior and pres-
ident of the College Democrats
University chapter, said Irwin's election
was a victory for all students.
"He's only 22 - and given his oppo-
nents, it's great," Cowen said. "He really
shocked them by the sheer number of
votes he got. The students (in this dis-
trict) are better represented."
The new commissioner said he sup-
ports a proposed millage increase that
would allow the county to purchase more
land for parks. Residents will vote on the
increase in November.
"This is an important measure," Irwin
said. "The land available for purchase is
rapidly decreasing and Ann Arbor's
parks are one of the best parts of the
city."
Irwin also is part of a committee of
tMartad r Anomm, tme mmhe usinQkro
ARouNID THE d r,..L
7
to public office.
City backs greater
AIDS prevention
SAN FRANCISCO - In the 1980s,
the message health officials put out to
the gay community was simple, straight-
forward and effective: If you are going to
have sex, use a condom, every time.
"It was the old health education
model," recalled Linda Fisher-Ponce,
who was then an HIV counselor with the
city of San Francisco.
"Someone would stand in the front of
the room with an easel and colored chalk
and do a group session," Fisher-Ponse
said.
Health officials and AIDS activists
agree that the message worked astonish-
ingly well. Gay men radically altered
their sexual behavior, and the rate of new
HIV infections declined steeply.
But here in the city that for so long has
been ground zero in the fight against
AIDS, it came as no surprise when stud-
ies presented during a government-spon-
sored forum on HIV prevention in
Atlanta last week showed there has been
a disturbing upsurge in risky sexual prac-
tices among gay men.
The Centers for Disease Control and
Prevention urged a greater emphasis on
prevention.
In San Francisco, AIDS organizations
say it isn't easy to come up with effective
messages for a gay community affected
drastically by the AIDS crisis.
Schools adopt
stricter security
WASHINGTON - After a sober-
ing two years of school shootings, a
growing number of school systems this
fall has embraced measures designed
to safeguard children against violence.
In hundreds of school districto
pupils must wear newly issued identW
fication cards to get onto school
grounds. Businesses that specialize in
security cameras are working over-
time to market, produce and install
them.
In Broward County, Fla., as in many
communities, high school students at
South Plantation High will no longt
be able to leave the campus for lunch:
Indonesia imposes
use of Martialawv
JAKARTA, Indonesia - With even
the national police chief calling the situ-
ation out of control, Indonesia imposed
martial law in East Timor early yester-
day, transferring power from the
province's civilian governor to Jakarta's
army generals.
The declaration of martial law was
seen as an attempt by the Jakarta govern-
ment to impress the world that it was tak-
ing steps to control the bloodletting.
But it might not greatly affect the sit-
uation on the ground because the
province has, in effect, been under mili-
tary control for 23 years and the
Indonesian army itself is being held
responsible by most Western diplomats
for masterminding the violence.
Indonesia's armed forces chief, Gen.
Wiranto, had pushed for the declaration
after a four-hour visit to East Timor on
Sunday but was turned down Monday in
a plenary Cabinet meeting.
The fact that he got his way indicated
the weakness of Jakarta's civilian gov-
ernment and the strength of the military
in internal affairs, diplomats said.
On Monday marauding gangs of anti-
independence militias took effective
control of East Timor and its calpji
forcing the United Nations to evatt
half its staff and Dili's Roman Catbhlic
bishop to flee for his life.
Search continues for
Greek quake victims
ATHENS, Greece - Rescue teams
and stunned residents used everything
from cranes to garden tools yesterd
to dig for those pinned under wrecks
from the strongest earthquake to hit
Athens in nearly a century - a 10-sec-
ond shudder that claimed at least 30
lives and left close to 100 missing.
The scenes of desperate searches and
survivors too frightened to return indoors
were sadly familiar - last month's mon-
strous quake in neighboring Turkey had
moved many Greeks to put aside their
enmity with Turks and mobilize aid:
- Compiled from Daily wire repoi*
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